Letters to the Editor U.S. 2nd biggest gold producer?

Your editorial in The Northern Miner of Aug 24 raised the question “Who really will be No 2 gold producer?” in the Western World.

Perhaps we can help clarify this issue from figures taken from the soon-to-be-published World Mine Production of Gold 1986-1990 which is available from The Gold Institute for $25(US).

The numbers reported to us by mining companies all over the world show the following likely production in Australia, Canada and the United States in millions of ounces troy:

Actual Projected Projected

1986 1987 1990 Australia 2.5 3.4 5.2 Canada 3.4 3.9 5.3 United States 3.7 4.3 6.0

At the same time, however, it is important to note that gold usage is also rising. Jewelry demand is expected to increase 30% by 1990, and industrial demand by 9%. Investment demand for gold coins and other bullion products is also expected to increase at least 30% as gold becomes a more-and-more acceptable addition to the prudent investor’s portfolio. For example, in the past four years alone, the percentage of American investors owning gold bullion has more than tripled to 8%; and this is still only a small percentage of the potential market. John H. Lutley Managing director The Gold Institute Washington, D.C.